RE:Aurora completes $230 million convertible debenture offeringOh Man - I hate convertibles. Any time I've seen them come in to a company, it gives the Deb owners the ability to short the stock above 13.05 with absolute impunity. Have to be the worst instrument for common shareholders ever invented especially when they have a conversion price that was above of the share price when they were announced.
On the plus side - we should be able to get to 14-16 before they start shorting again. 230 Million+ is 18 million shares that these guys can short, and obviously did as soon as the offering was announced. They have probably already made $30-40 Million from the shorts and covered well below the 13 number - so double bonus for them. Check the March 1 Short report - they covered most of the shorts already.
Here is the clause that will keep the stock below $17. Holders won't let this happen.
"The Company may force the conversion of the principal amount of the then outstanding Convertible Debentures at the Conversion Price on not less than 30 days' notice should the daily volume weighted average trading price of the Common Shares be greater than $17.00 for any 10 consecutive trading days"